IEDA board awards tax incentives for 2 Western Iowa manufacturers

One rebuilding facility after April tornado

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Two manufacturers with footprints in the agriculture sector are moving forward with expansion projects at facilities in Western Iowa totaling $28.5 million.

Cargill Inc., a global food, agricultural, financial and industrial products provider based in Minneapolis, is working on a $26 million project to add rail spurs and rail cars and build a redundant boiler system at its soybean processing facility in Sioux City, according to documents from the Iowa Economic Development Authority.

In a separate project, C&A Scale Services Inc. intends to invest $2.58 million to rebuild and enlarge its manufacturing facility in Minden which was destroyed by a tornado on April 26, the state agency documents show.

C&A, based in Honey Creek, Iowa, manufactures and installs bulk weight grain loadout systems, truck scale automation and truck probe sampling systems, according to IEDA.

The agency’s board awarded each project a tax incentive package on July 19 in separate votes to aid the redevelopments.

An IEDA project report shows Cargill will receive a total of $336,000 from an investment tax credit and a sale and use tax refund for its project. The expanded facility is expected to create four jobs.

Cargill told IEDA officials the company will start the rail expansion in August 2025, which is intended to increase the Sioux City facility’s volume and efficiency. Construction of the new boiler building will begin in October 2026 and the purchase of the machinery and equipment in April 2027, according to a project timeline in the report.

The city of Sioux City has committed to provide Cargill with an industrial property tax abatement estimated at $14,262.

C&A had planned to increase the size of its Minden location from 7,500 square feet to 12,400 square feet before the tornado damage in April and the last investment follows through with its original proposal, an IDEA report says.

The company will receive $105,856 in tax credits and a sales and use tax refund from the state, and the city of Minden will provide a $45,076 property tax abatement over five years.

The project will bring four jobs to the Pottawattamie County community of about 600 people.

Minden experienced more than $12 million in property damage during the April 26 tornado outbreak including the city’s water treatment plant which was destroyed, according to a report from KCCI.

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Mike Mendenhall

Mike Mendenhall is associate editor at Business Record. He covers economic development, government policy and law.

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